Required $1$

Record the payments for the first and second month under each option. $($If no entry is required for a particular transaction$/$event$,$ select

$"$No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

Journal entry worksheet

Record the first payment of a note for $$200,000$ at $7\%$ with monthly payments

of $$2,322\mathrm{.}17$ over $10$ years.

Note: Enter debits before credits.

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A company decides to obtain a small$-$business loan of $$200,000.$ The financial institution from which the company borrows offers two

options:

a$.$ Borrow $$200,000$ at $6\%$ with monthly payments of $$3,866\mathrm{.}56$ over $5$ years.

b$.$ Borrow $$200,000$ at $7\%$ with monthly payments of $$2,322\mathrm{.}17$ over $10$ years.

Required:

Record the issuance of an installment note payable under each option.

Record the payments for the first and second month under each option.

Determine the total amount of interest paid under each option over the full period of the note.

Complete this question by entering your answers in the tabs below.

Record the payments for the first and second month under each option. $($If no entry is required for a particular transaction$/$event$,$ select

$"$No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

Journal entry worksheet

Record the second payment of a note for $$200,000$ at $7\%$ with monthly

payments of $$2,322\mathrm{.}17$ over $10$ years.

Note: Enter debits before credits.A company decides to obtain a small$-$business loan of $$200,000.$ The financial institution from which the company borrows offers two

options:

a$.$ Borrow $$200,000$ at $6\%$ with monthly payments of $$3,866\mathrm{.}56$ over $5$ years.

b$.$ Borrow $$200,000$ at $7\%$ with monthly payments of $$2,322\mathrm{.}17$ over $10$ years.

Required:

Record the issuance of an installment note payable under each option.

Record the payments for the first and second month under each option.

Determine the total amount of interest paid under each option over the full period of the note.

Complete this question by entering your answers in the tabs below.

Record the payments for the first and second month under each option. $($If no entry is required for a particular transaction$/$event$,$ select

$"$No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

Journal entry worksheet

Record the second payment of a note for $$200,000$ at $6\%$ with monthly

payments of $$3,866\mathrm{.}56$ over $5$ years.

Note: Enter debits before credts.